(August 16 – 11:45 ET) – Canadian First Financial Group Inc. is reporting a loss of ($115,443) for the second quarter ended June 30, compared to a loss of ($68,497) a year ago. The loss results from an increase in goodwill resulting from the acceleration of the amortization of its securities subsidiary, Burgeonvest Securities during the second quarter of this year.
Net income for the six months ended June 30 was $296,264, or 3.5¢ a share, compared to $40,714, or 0.6¢ a share for the six months ended July 31, 1999.
Revenues for the quarter were $5.9 million, up from $3.4 million a year ago. The company says the increase reflects the positive impact of the acquisition of Hewmac Financial Group one year ago.
Peter Williams, Chair and CEO of CFFG said in a statement “Prior to the goodwill charge, the company made a small profit in the second quarter. The lower than expected net income before goodwill was due to increased costs associated with the acquisition of a new mortgage brokerage subsidiary, Golden Financial, and a new life insurance brokerage subsidiary, EFI Financial Services in the second quarter.
CFFG’s principal subsidiaries are Ross Dixon Financial Services, Hewmac Financial Group, Burgeonvest Securities and EFI Financial Services.
-IE Staff